Toronto's main stock index looked set to open higher on Tuesday, on hopes that Federal Reserve Chairman Ben Bernanke might hint at delivering more monetary stimulus even as the Bank of Canada is expected to keep interest rates unchanged.
The S&P/TSX Composite Index pushed up 6.65 points, to close Monday at 11,521.18. Canada stock futures traded up 0.3%
The Canadian dollar traded lower Tuesday morning by 0.06 cents to 98.46 cents U.S.
Analysts unanimously expect the Bank of Canada to hold its main policy rate at 1% when it makes its announcement later this morning, but the real focus will be on whether it will repeat, dilute or omit the message that it may soon need to raise the rate.
Among the stocks to watch in the early going, AuRico Gold Inc., whose CEO resigned for health reasons and was replaced by Scott Perry. Perry joined the gold miner as chief financial officer in February 2008.
Separately, the gold miner cut its 2012 production outlook on Monday as a high turnover of skilled labourers at its Ocampo mine in northern Mexico weighed on gold and silver output.
Economically speaking, Statistics Canada reported this morning that manufacturing sales continued their downward trend.
The figure declined 0.4% to $48.7 billion in May, the fourth decrease in five months.
ON BAYSTREET
The TSX Venture Exchange gave back 3.61 points Monday to 1,183.35. The Nasdaq Canada index slid 3.14 points to 341.99.
ON WALLSTREET
U.S. stocks were set to open higher Tuesday as investors considered more earnings reports and Federal Reserve chairman Ben Bernanke's testimony before a Senate committee.
Futures for the Dow Jones added 44 points, or 0.4%, to 12,692, about 45 minutes before the opening bell. Futures for the S&P 500 acquired 6.3 points, or 0.5%, to 1,353.70, and for the Nasdaq, futures gained 11.75 points, or 0.5%, to 2,583.25.
Coca-Cola and Goldman Sachs reported positive quarterly results, and shares of both companies were up in pre-market trading. Shares of Johnson & Johnson were down after it released figures.
Results coming after the close include chipmaker Intel and Internet portal Yahoo, which named Google executive Marissa Mayer as its new CEO late Monday.
Investors will also get data on the health of the broader economy amid worries about whether the U.S. recovery may be sputtering. Reports on tap include consumer prices, industrial production and foreign purchases of Treasuries.
Also on Tuesday, Bernanke will give his semi-annual monetary policy testimony before the Senate Banking Committee.
Investors will be listening closely for any clues about whether the central bank is considering a third round of quantitative easing, expanding the money supply.
In Europe, there were more delays toward a debt crisis solution. Germany's high court said it will be another eight weeks before it issues its decision on the legality of the multinational bailout fund, the European Stability Mechanism.
Spain's auction of 12- and 18-month debt resulted in yields that were lower than last month. But debt worries remain, and the yield Spain's on 10-year note edged up to 6.80%, closer to the 7% point that the nation's prime minister has deemed untenable.
European stocks were mixed in afternoon trading. Britain's FTSE 100 was 0.3% lower, the DAX in Germany added 0.6% and France's CAC 40 ticked up 0.5%.
Asian markets closed higher. The Shanghai Composite rose 0.6%, the Hang Seng in Hong Kong gained 1.8% and Japan's Nikkei added 0.4%.
Oil for August delivery rose 16 cents to $88.59 U.S. a barrel.
Gold futures for August delivery rose $3.40 to $1,595 U.S. an ounce.
Related Stories
